Fairfax-MRN radio merger now a war of words

John Singleton, MRN’s biggest shareholder, when asked if he would deal with Fairfax again, said: ‘I don’t want to go anywhere near them, let them go. [But] if they want to buy us, and they offer us too much money, I’ll take it.’
Photo: Jesse Marlow

Fairfax Media
’s failed $200 million radio merger talks with
John Singleton
’s
Macquarie Radio Network
have descended into a vicious war of words with insults and recriminations flying on both sides.

The collapse of the talks, revealed on Monday by Fairfax, owner of The ­Australian Financial Review, happened during a row over ensuring Macquarie shock jocks
Alan Jones
and
Ray Hadley
would be part of the deal.

It follows a history of troubled flirt­ations between both sides, which held abortive talks two years ago when Fairfax considered selling its radio assets to MRN for about $220 million.

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MRN believes Fairfax may have made the request to meet Mr Jones and Mr Hadley in order to kill the deal and has suggested it could have made a deal conditional on their approval instead.

Mr Singleton said MRN objected to the meeting request because, “if you have a contract, and you induce someone to breach that contract, that is illegal". He also strongly disputed the suggestion he could not have financed the previous proposed deal. “First they said we couldn’t buy them because we couldn’t organise the finance, ie we couldn’t afford it, that’s what they’re saying. Management here does not ask permission of anyone to make business decisions. Whether they [the presenters] liked it or not, it would happen."

Mr Singleton said Fairfax “asked for a meeting with Greg Hywood and the reverend Roger Corbett with Alan Jones and Ray Hadley because before Fairfax made a firm offer of acquisition they wanted to make sure they would be able to get on . . . that they could ­control them, despite the charter of independence that they go on about."

This refers to a Fairfax charter of ed­itorial independence, which Fairfax’s biggest shareholder, the mining magnate
Gina Rinehart
, has refused to sign.

Continued criticism

Describing himself as a “minimal" shareholder in Fairfax, Mr Singleton continued his criticism of Fairfax for not giving his friend, Mrs Rinehart, a board seat despite her being the ­biggest shareholder. Asked if he would deal with Fairfax again, Mr Singleton replied: “I don’t want to go anywhere near them, let them go. [But] if they want to buy us, and they offer us too much money, I’ll take it."

A Fairfax spokesman said Mr Singleton had made “nonsense and highly defamatory remarks" in the media on Tuesday, adding: “Anyone who had the misfortune of hearing John Singleton’s deluded and self-indulgent sprays on 2GB and elsewhere this morning can only feel sorry for the man. Mr Hadley and Mr Jones are the key assets of any value in the Macquarie Radio Network and without an opportunity to meet with them there was no point in Fairfax Media pursuing talks with the highly volatile and emotional organisation.

‘‘The fact remains the directors of Fairfax will not enter into any trans­action that they do not believe is in the best interests of Fairfax shareholders."

The final ratings figures for 2013 showed 2GB was the clear leader in Sydney ratings, with 14.4 per cent market share. Fairfax Media’s 3AW won the Melbourne ratings, with 12.7 per cent in the latest ratings. The two parties have held talks for about a decade, Mr Singleton said.